Advanced Opportunity Space Oscillator Strategy A Quantitative Trading System Based on Fair Value Gaps

/*backtest
start: 2024-02-22 00:00:00
end: 2025-02-19 08:00:00
period: 1h
basePeriod: 1h
exchanges: [{"eid":"Binance","currency":"ETH_USDT"}]
*/

// ----------------------------------------------------------------------------
// This Pine Script™ code is subject to the terms of the Mozilla Public License
// 2.0 at https://mozilla.org/MPL/2.0/
// © OmegaTools
// ----------------------------------------------------------------------------

//@version=5
strategy("FVG Oscillator Strategy", 
     shorttitle="FVG Osc v5 [Strategy]", 
     overlay=false, 
     initial_capital=100000, 
     default_qty_type=strategy.percent_of_equity, 
     default_qty_value=100)

//------------------------------------------------------------------------------
// 1) Input Parameters
//------------------------------------------------------------------------------
lnt   = input.int(50, "Bars Back")
area  = input.bool(true, "Show Areas")
upcol = input.color(#2962ff, "Positive Color")
dncol = input.color(#e91e63, "Negative Color")

//------------------------------------------------------------------------------
// 2) FVG Detection
//    bfvg = bullish FVG, sfvg = bearish FVG
//------------------------------------------------------------------------------
bfvg = low > high[2]
sfvg = high < low[2]

//------------------------------------------------------------------------------
// 3) Additional Conditions - FVG Verification (Volume, Gap Size)
//------------------------------------------------------------------------------
vol  = volume > ta.sma(volume, 10)
batr = (low - high[2]) > ta.sma(low - high[2], lnt) * 1.5
satr = (high - low[2]) > ta.sma(high - low[2], lnt) * 1.5

//------------------------------------------------------------------------------
// 4) Sum of Bullish / Bearish FVG within the Last lnt Bars
//------------------------------------------------------------------------------
countup   = math.sum(bfvg ? 1 : 0, lnt)      // +1 for each BFVG
countdown = math.sum(sfvg ? -1 : 0, lnt)     // -1 for each SFVG

//------------------------------------------------------------------------------
// 5) Verification (e.g., Require Higher Volume or Large Gap)
//------------------------------------------------------------------------------
verifyb = (bfvg and vol[1]) or (bfvg and batr)
verifys = (sfvg and vol[1]) or (sfvg and satr)

//------------------------------------------------------------------------------
// 6) Normalized Gap Values
//------------------------------------------------------------------------------
normb = ((low - high[2]) * countup * 0.75) / ta.highest(low - high[2], lnt)
norms = ((high - low[2]) * countdown * 0.75) / ta.lowest(high - low[2], lnt)

//------------------------------------------------------------------------------
// 7) Total Net FVG Count + Calculation of Maximum for fill()
//------------------------------------------------------------------------------
totcount = countup + countdown
max      = math.max(
               ta.highest(countup, 200), 
               ta.highest(math.abs(countdown), 200)
           )

//------------------------------------------------------------------------------
// 8) Plotting Values (as in an indicator – can be kept for visualization)
//------------------------------------------------------------------------------
up   = plot(countup,     "Buy FVG",  color=upcol,  display=display.none)
down = plot(countdown,   "Sell FVG", color=dncol,  display=display.none)
zero = plot(0, "", color.new(color.gray, 100), display=display.none, editable=false)

// Net Value (sum of FVG)
plot(totcount, "Net Value", color=color.new(color.gray, 50))

// Filling areas above/below zero

plot(verifyb ? normb : na, "Long Pattern Width",  color=upcol,  linewidth=1, style=plot.style_histogram)
plot(verifys ? norms : na, "Short Pattern Width", color=dncol, linewidth=1, style=plot.style_histogram)

//------------------------------------------------------------------------------
// 9) Simple Trading Logic (STRATEGY)
//------------------------------------------------------------------------------
// - If "verifyb" is detected, go long.
// - If "verifys" is detected, go short.
//
// You can extend this with Stop Loss, Take Profit, 
// closing old positions, etc.
//------------------------------------------------------------------------------
bool goLong  = verifyb
bool goShort = verifys

// Basic example: Open Long if verifyb, Open Short if verifys.
if goLong
    // First close any short position if it exists
    if strategy.position_size < 0
        strategy.close("Short FVG")
    // Then open Long
    strategy.entry("Long FVG", strategy.long)

if goShort
    // First close any long position if it exists
    if strategy.position_size > 0
        strategy.close("Long FVG")
    // Then open Short
    strategy.entry("Short FVG", strategy.short)